Chapter 3: 16DQ (page 139)
What is the purpose of the Income Summary account?
Answer:
Main purpose of income summary account is calculating the net income or net loss of the company for a particular period.
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In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.
A. Current assets E. Current liabilities
B. Long-term investments F. Long-term liabilities
C. Plant assets G. Equity
D. Intangible assets
7. Copyrights
In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.
A. Current assets E. Current liabilities
B. Long-term investments F. Long-term liabilities
C. Plant assets G. Equity
D. Intangible assets
8. Current portion of long-term note payable
Question: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),
accrued
expenses (AE), or accrued revenues (AR).
a. To record revenue earned that was previously received as cash in advance.
b. To record wages expense incurred but not yet paid (nor recorded).
c. To record revenue earned but not yet billed (nor recorded).
d. To record expiration of prepaid insurance.
e. To record annual depreciation expense.
In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity
13. Cash
Identity which of the following accounts would be included in a post-closing trial balance.
a. Accounts Receivable c. Goodwill e. Income Tax Expense
b. Salaries Expense d. Land f. Salaries Payable
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